2. Quick Diagnostic
• Answer the questions on the sheet
in front of you.
• Calculate your score
• 10 minutes
Industrial Solutions, Inc
3. Why is Change So Hard ?
• We focused on the externals of
lean tools
• We missed the underlying dynamic
of how an organization thinks and
processes information
Industrial Solutions, Inc
4. Bad Assumptions
• People function on a rational level
• Change is good and automatic
• Company culture is easy to
changer
Industrial Solutions, Inc
6. Transformation Keys
• Real change occurs at the process level
when people start to think differently
• Self interest must be linked to clearly
defined key performance indicators (KPI)
• Performance must be measured in
continuous, rapid feedback loops
• We have to create a “culture of learning”
Industrial Solutions, Inc
7. CEO
Future
Mission Statement
Strategic Objectives
Strategy Deployment
Present First Line Managers/Supervisors
The Processes
S C
Industrial Solutions, Inc
8. What Changes Need to
Occur?
• Management focus
• View of labor, reward and compensation
• Organizational structure/chain of
command
• Methods of evaluating decisions/results
• Data collection and analysis
Industrial Solutions, Inc
9. In Other Words
The “Culture” is going to be affected if
you try to implement lean
manufacturing
Industrial Solutions, Inc
10. What Is “Culture”?
The set of shared attitudes,
values, goals, and practices that
characterizes an institution or
organization
Industrial Solutions, Inc
14. What is the Evidence of
Your Culture at Work
• People’s view of their work
• What is important to management
• How the place looks
Industrial Solutions, Inc
15. How Do You Change a
Culture?
• Strategy and Alignment
• Vision
• Communicate and motivate
• Empower employees
• Implement
• Transition to a Learning Organization
Industrial Solutions, Inc
16. Strategy and Alignment
Culture change requires a strategy and
top level commitment or your efforts
will fail
Culture change is hard and takes time.
Only a long term strategy will keep
you on track.
Industrial Solutions, Inc
17. Commitment and Alignment
The Management Team has to be pulling
together
• Are you going to really own the new model
• Are you committed to each other’s success
The people will listen to what you say….
but they will only believe your actions
Industrial Solutions, Inc
18. The Lean Enterprise Vision
Primary Goals
Creating “Flow” along “Value Streams”
in response to customer demand
Eliminating “Waste” in the value
stream
Encompassing a comprehensive
approach to the entire organization -
Changing the Culture
Industrial Solutions, Inc
19. A Value Stream Flows Counter To the
Current Culture
Flow in a value stream is fundamentally
different than the processes in traditional
organizations that are organized along
functional boundaries.
Most of the effort in traditional companies is
expended in managing the interface between
the boundaries.
Industrial Solutions, Inc
20. Now…Create a Vision
Without a vision…..
the people will perish
Industrial Solutions, Inc
21. A Lean Enterprise
Looks Different
Defining The Vision
Workplace Order Continuous
and Cleanliness Improvement
Culture
JIT Production, Empowered
minimum waste Teams aligned
with strategy
Superior
Visual
Quality
Management
Industrial Solutions, Inc
22. How Do You Change a
Culture?
• Strategy and Alignment
• Vision
• Communicate and motivate
Industrial Solutions, Inc
23. Communicate and
Motivate
People must believe there is a
need for change
• Training
• Communication
• Awareness
• Metrics
Industrial Solutions, Inc
24. Communication Tools
• Employee meetings
• Written media
• Continuous displays
• Embedded messages
Industrial Solutions, Inc
26. How Do You Change a
Culture?
• Strategy and Alignment
• Vision
• Communicate and motivate
• Empower employees
Industrial Solutions, Inc
27. Empower
• The best companies give all employees
40-60 hours of training every year
• Management needs to develop a
comprehensive training plan based on
the lean strategy
• Let people be fully involved in change
Industrial Solutions, Inc
28. How Do You Change a
Culture?
• Strategy and Alignment
• Vision
• Communicate and motivate
• Empower employees
• Implement
Industrial Solutions, Inc
29. Implementation
• There is not one right way
• You have to adapt to your own
needs
• The goal is waste elimination, not
figuring out a perfect way to get
there!!
Industrial Solutions, Inc
30. Implementation
• Key on a strategic value stream
• Train and empower the key players
• Conduct Kaizen Events to jump
start activity
• Find a simple way to measure
• Sustain activity continuously
Industrial Solutions, Inc
31. Strategic Value Stream
• Quickest way to affect the bottom
line
• Focuses your resources while
maximizing benefits
• Answers many questions about
difficult issues
Industrial Solutions, Inc
32. The Maturity Path
• Standardized Work,Visual Control
• Cellular Flow
• Synchronous Production
• Pull Systems, Supply Chain
• Administrative Systems
• Value Stream Costing
Industrial Solutions, Inc
33. Deploy the Strategy
• Develop a Plan for Enterprise
Conversion
• Establish a baseline with a good
Assessment Tool
• Implement (Deploy the Strategy)
• Review Status Periodically
Industrial Solutions, Inc
34. Management Time
To really change the culture
will require full time
involvement!
• Participating in training
• Participating on kaizen teams
• Removing barriers
• Walking the talk
Industrial Solutions, Inc
35. How Do You Change a
Culture?
• Strategy and Alignment
• Vision
• Communicate and motivate
• Empower employees
• Implement
• Transition to a Learning Organization
Industrial Solutions, Inc
36. A Learning Organization
• Identified as the key trait for a
successful company
• What does that mean?
Industrial Solutions, Inc
37. A Learning Organization
The distinctive traits
• Systematic problem solving
• Systematic waste elimination
• Direct observation of processes
• High agreement on goals and
objectives
Industrial Solutions, Inc
38. Systematic Problem
Solving
• Plan-Do-Check-Act
• A3, 8D, 5-Y, 12 Step, etc., etc.
• Just do it!
Industrial Solutions, Inc
39. Systematic Waste
Elimination
• 7 deadly wastes
• Why can’t we see it?
Industrial Solutions, Inc
40. Direct Observation
• Activities, connection and flows
• Point to point relationships
• Deep understanding of what is
really happening in the organization
Industrial Solutions, Inc
41. High Agreement
• What we do and how we do it
• Management team must be aligned
and pulling for each other
• People will detect any misalignment
and will revert to existing norms
Industrial Solutions, Inc
42. Concluding Statements
Nothing of any significance will ever happen without
the commitment and drive of top management.
The landscape is strewn with the wreckage of
companies that failed to understand the necessity
of culture change.
Lean Manufacturing is as much a state of mind as it is
a process for excellence in manufacturing
Industrial Solutions, Inc
The bottom portion of the graph represents suppliers inputting goods and services into any organization and those goods and services being absorbed into the everyday processes and the final outputs going out to the external customer. How good we are at the everyday processes determines the quality (good or bad) that goes out to the external customer Sitting on top of those processes is a management team, hopefully looking far into the future focusing on the strategic direction of the company and pressing for change by shaping a business plan that will be geared to positive change The farther up the management ladder, the farther into the future personnel will be looking But unless the good intentions of management get translated into positive changes in the everyday processes that go on below, we are wasting our time. The person nearest the everyday processes is the first line manager. They are the linchpin between all the good intentions and the everyday processes that make up what we do. MM focuses on helping the first line manager to improve the everyday processes and to deliver the business plan more effectively.
This is where to show the classic booklet on “Cost Accounting Principles”
Show hand-out of the maturity path There are some norms that we can use to benchmark progress. You want to see progress along this path.
We are going to apply the strategic vision on this value stream and begin to identify events that will move us along the maturity path